Greenback is backed by US tax bill progress

10:43 04.12.2017

On Monday, the US currency rallied versus a basket of the other key currencies right after the US Senate successfully passed a tax bill at the weekend, thus spurring expectations for a faster tempo of rate lifts from the major US bank.

The evergreen buck was underpinned by hopes that tax cuts for corporations are going to back the American economy, and also push Treasury yields up because the US government becomes more dependent on debt thanks to reduced tax income.

Market participants were still cautious amid worries over the everlasting Russia probe, reacting to Friday’s reports that ex-national security adviser Michael Flynn is ready to testify against US President Donald Trump in the long-lasting investigation.

The US currency gained ground against the Japanese yen. USD/JPY inched up 0.64% hitting a two-and-a-half week maximum of 112.91.

The common currency dived versus the greenback, with EUR/USD decreasing 0.23% being worth 1.1868.